The gig economy is transforming the “precedent for work and payments,” the report from Branch and Marqeta reveals. It also mentions that the growth of the gig economy has already been set in motion, however, the past year has really sped up its transformation.
As noted in the comprehensive report, individuals are “finding freedom in gig work to carve out their own path in different ways and looking to it for financial security when times get tough.”
The report adds that the gig economy is expanding 3x faster than the US workforce “as a whole.” And it’s now on track to represent over half of the US workforce, by 2023, which will be “involved in gig work of some kind.”
The report continued:
“Gig growth has set new expectations and increased competition, making it increasingly important to understand what workers look for in a platform and payments methods. Thanks to the gig economy, more employees than ever hold the belief that if they can set their own work schedule, they should have the option to schedule when they get paid, too.”
The report further noted that these are the reasons why Branch and Marqeta have released the Gig Payments Report— which takes a close look at payments and platform preferences of the current gig workers.
The report reveals that they surveyed more than 1,000 gig workers across various platforms and fields. The researchers have taken a detailed look at how the COVID-19 pandemic has affected peoples’ preference for gig work, “what they look for in a platform, how and when they preferred to get paid, and top financial concerns.”
The report reveals:
“About 4 in 5 gig workers want greater flexibility when they get paid. Over 70 percent of gig workers prefer to receive their pay within the same day they work, with 39% preferring right after each job and 33% at the end of each day. About 10 percent (10%) want to request payouts at any time, while only 18% prefer weekly.”
The report further noted:
“The vast majority have increased their use of contactless payments such as online, mobile, and digital wallets (80%), with more than half (56%) increasing their use significantly. Among preferred payments, debit card was overwhelmingly their preferred method (74%), with cash a distant second (9%).”
The report also mentioned that workers are almost 5x more likely to prefer online or mobile app payments or digital wallets (14%) over a credit card (3%).
This latest survey shows how the new possibilities “created by modern card issuing are directly empowering more positive financial experiences for those in need,” Vidya Peters, Marqeta CMO, noted.
“When looking to gig work, people are motivated by the idea of being able to access their earnings immediately, and without fees. We can see that not only are these demands creating a new relationship with our money, they’re bringing greater peace of mind and financial security.”